BlackBerry Maker Posts Huge Loss, Delays New Phone

BlackBerry maker Research In Motion's freefall is continuing. The Canadian company's shares plunged 15% after it posted a $518 million third-quarter loss and announced that its new BlackBerry 10 smartphone had been delayed until next year, reports the Wall Street Journal. The company says it is cutting 5,000 jobs—nearly a third of its workforce—and experts believe it might not survive long enough to release the new smartphone. CEO Thorsten Heins says the delay is due to difficulties with new features on the much-hyped phone and the company is in the midst of a "strategic review."

"They had one hope—one—and that was to make BB10 the greatest thing since sliced bread and get it out on time. Clearly, they have failed," the chief of a Toronto software firm tells the Globe and Mail. "There’s just no way now to pull out of the death spiral,” he says. “With stiff competition and a complete lack of marketplace trust, zombie Steve Jobs couldn't fix RIM." Where did it all go wrong for the company? Analysts blame years of resistance to innovation and operating with two CEOs. (More Research in Motion stories.)